Quotes About Moral hazard

Don't reward bad behavior. It is one of the first rules of parenting. During the financial cataclysm of 2008, we said it differently. When we bailed out banks that had created their own misfortune, we called it a 'moral hazard,' because the bailout absolved the bank's bad acts and created an incentive for it to make the same bad loans again.

How about we all stop paying our mortgages! It's a moral hazard.

There's nothing more dangerous than than someone trying to act for the greater good.

What's more, our government's responses were late, slow, indecisive and almost impossible to understand. Perhaps the worst outcome so far is the rise of "moral hazard." When risky behavior is insured against the consequences of its failure, that is considered moral hazard. If performed on a broad enough scale, it can be catastrophic for a nation.

Don't make a deal with the devil.

This is an event horizon, colonel. This is where it all goes wrong. Possibly for nothing. Possibly for some little thing other guys have gotten away with. But you're going to crash and burn. Best case, you're going to stall. Best case, you're going to get an asterisk against your name forever. As in, we can't be sure about that guy.

Un hombre que dedica toda su atención a hacer el bien y ninguna a las consecuencias es un hombre peligroso.

Don't reward bad behavior. It is one of the first rules of parenting. During the financial cataclysm of 2008, we said it differently. When we bailed out banks that had created their own misfortune, we called it a 'moral hazard ' because the bailout absolved the bank's bad acts and created an incentive for it to make the same bad loans again.

Market discipline can only limit moral hazard to the extent that debt and equity holders believe that, in the event of distress, they will bear costs.

La habilidad para razonar de manera normal combinada con la ausencia de emociones morales es una combinación peligrosa.

I also believe that critics overstate the contribution of moral hazard from the Bear intervention to the resurgence of the crisis in the fall.

Ratings agencies are highly conflicted, unimaginative dupes. They are blissfully unaware of adverse selection and moral hazard. Investors should never trust them.

In most industries, a bad business goes bankrupt, but soccer clubs almost never do. No matter how much money they waste, someone will always bail them out. This is what is known in finance as "moral hazard": when you know you will be saved no matter how much money you lose, you are free to lose money.

As we try to make the financial system safer, we must inevitably confront the problem of moral hazard.

In addition to the emotional cost, these interventions have bred a sense of moral hazard and recklessness, for if outsiders will step in to correct Greek mistakes, then it makes sense to take big risks and not to invest in sound institutions. In turn, this has likely reinforced the ambition of Greek elites and has fed these successive boom-bust-bailout cycles.

mortgage bonds, the industry was also fraught with moral hazard. "It was a fast-buck business," says Jacobs. "Any business where you can sell a product and make money without having to worry how the product performs is going to attract sleazy people.

It's Laissez-Faire Until You Get In Deep Shit

You give a guy a license to steal, you've got to expect him to use it.

Which brings us to what is known as the agency problem.

if one follows one's self-interest one wants to be safe, whereas the path of justice and honour involves one in danger.

Suddenly the people running Savings and Loans had nothing to lose - a clear case of what economists call moral hazard.

The gambler is a moral suicide.

There's nothing more dangerous than someone trying to act for the greater good.

The fact is, that I told him a story with a moral." "Ah! that is always a very dangerous thing to do